FAQ's

BFG Engineering Brokers

"Building a better future for our contractors"

What is Car/Contractors All Risk Insurance/Contractors Work Insurance?

From the inception of the works, construction sites face an array of perils that could cost the contractor and all the parties involved both time and money if they do not have the best resources in place. It is therefore important that our clients obtain the correct cover for their specific projects in order to ensure that they do not suffer any unnecessary loss following an incident. Our CAR/Contractors Works insurance covers all types of building and civil engineering construction including, amongst others, residential housing), commercial development (such as office blocks, warehouses and shopping centres) and civil infrastructure (such as roads, dams, sewerage reticulation and pipelines), indemnifying the insured against the hazards that may threaten these works whilst under construction.

What is a Performance Guarantee?

A Performance Guarantee is issued on behalf of a contractor to guarantee the full and due performance of the contract according to the plans and specifications of the project.

The value of the Performance Guarantee is normally set at 10% but certain contracts for instance the JBCC 2000 principal agreement is set at 12% of the total contract value. 

A project requiring a payment or a performance guarantee will usually require a letter of intent, in order to qualify to tender for the project. A payment and performance guarantee will then be required of the winning/awarded bidder as a security to guarantee the completion of the job. 

Should the contractor fail to construct the building according to the specifications laid out by the contract, the client is guaranteed compensation for any monetary losses up to the amount of the performance guarantee issued on behalf of the bidder/contractor.

What is LOI/Letter of Intent?

A LOI/Letter of Intent is normally issued on behalf of the contractor to the employer stating that the Guarantor/Insurer has the intent to issue the Performance Guarantee or relevant insurances on behalf of the contractor once it has been awarded the contract as mentioned in the letter of intent.

The Letter of Intent contains the following details:

  • Contractor Name and details
  • Employer Name and details
  • Description of the works that will be done
  • Tender/Bid number

What is SASRIA Insurance (South African Special Risk Insurance Association)?

Sasria SOC Ltd’s core business is the provision of short-term insurance for riots, strikes, terrorism, civil commotion and public disorder to businesses and individuals. The cover is offered in the following classes of insurance business:


  • Material damage
  • Business interruption
  • Money
  • Goods in transit
  • Motor and construction risk.
Are my tools and plant covered under a contract works Insurance/Car? 

Normally it is not covered under the same policy unless specifically requested in writing by the client to the Insurer.

What is Plant All Risk/Par Cover?

This is a insurance product specifically designed to cover, plant items (Excavators. TLB and water tanks etc.) it also includes tools cover (as per the list of tools supplied to us) and scaffolding cover.


Site Liability and Road Risk Liability is optional to be included on the Plant All Risk Policy as the Plant Items works on various sites and also drives on public roads to various sites.


The Site Liability covers the contractor/plant owner from damages occurred by his/her plant items against damages occurred on site against a third party claim.


Road Risk Liability Insurance covers the contractor/insured from any damages to a third party whilst using public roads.

How do I claim under my Contractors All Risk Policy?

All theft claims must be reported to the police within 24 hours after the claim arises.Take photos of the damages occurred and gather all details of the relevant parties involved Witness details can also assist your claims.Notify your Broker IN WRITING of the claim so that you have a paper trail.

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